Soft drink deal
AG Barr takes full ownership of tropical brand Rio
AG Barr has acquired the Rio soft drinks brand through the purchase of Rio Tropical in a £12.3 million cash deal.
Acquired from Hall and Woodhouse, the independent brewer and pub company, Rio has been marketed, sold and distributed on an exclusive licence basis by Irn-Bru maker AG Barr’s recently-acquired Boost Drinks division since 2021.
Cumbernauld-based Barr said that with a brand building business model, and following the Boost acquisition, it has moved quickly to secure the long-term position of the Rio brand within its wider portfolio.
It consider it to be an important contributor to the previously announced ongoing margin rebuild programme, though the transaction is not expected to have a material impact on the group’s profits for the current financial year ending 28 January 2024.
Roger White, CEO of AG Barr, commented: “As brand builders we are delighted to acquire the Rio brand and secure its long-term position in our wider portfolio.
“This allows us to realise the benefits of full brand ownership and support Rio’s continued growth. This acquisition is a further positive indication of our strategic ambitions.”